Although sovereign wealth funds (SWFs) have been around for decades, it was not until the subprime mortgage crisis of 2007 that they truly garnered recognition as major players in the investment market. When they did, they were hailed as saviors for injecting billions of dollars into struggling US companies.
With foreign direct investment into the US shrinking, SWFs provide an attractive alternative source of capital. And they are growing. Global SWF assets increased 16% last year, and are currently valued at more than US$6 trillion; roughly equivalent to Japan’s GDP………………………………………..Full Article: Source

The head of China Investment Corp.’s Toronto office is stepping down as the Chinese sovereign wealth fund broadens its North American investments after suffering losses in Canada, sources say.
Felix Chee, who was appointed in January 2011 as chief representative for CIC’s first international office, will leave when his term ends this month, say the sources, who asked not to be identified as they weren’t authorized to speak about the plans. Chee didn’t return calls to his Toronto office and emails seeking comment………………………………………..Full Article: Source

1Malaysia Development Bhd (1MDB), the country’s sovereign wealth fund, is considering selling RM1.5 billion sukuk, according to two people with knowledge of the plan. The proceeds will be used to finance the relocation of an air force base in Sungai Besi, here, they said.
1MDB agreed to take over the redevelopment of the site from the government in June 2011 on condition it would pay to build a new military air base in Negri Sembilan, according to a June statement………………………………………..Full Article: Source

Super funds members can enjoy double-digit growth this year despite predictions of poor performance in December. Strong growth in international shares helped boost nest eggs in November and resulted in median growth funds (61 to 80 per cent growth assets) increasing by 0.8 per cent.
Research firm SuperRatings found the returns in December were shaped to be the worst in 2013 after Australian and international share markets both dropped (-4.1 per cent and -2.0 per cent respectively)………………………………………..Full Article: Source

Norges Bank Investment Management, the manager of Norway’s $800 billion sovereign wealth fund, and MetLife have formed a joint venture to invest in Class A office properties in key U.S. office markets. It is the third such venture formed by NBIM in the past year as the wealth fund looks to boost its real property holdings.
The joint venture’s initial investment is in One Financial Center in Boston. NBIM has acquired a 47.5 percent share of the asset from Beacon Capital. Concurrently, MetLife increased its ownership share in the property to 52.5 percent………………………………………..Full Article: Source

Vladimir Putin got what he wanted by anchoring Ukraine to Russia and pushing the European Union back from his borders. The cost is yet to be tallied. The Russian leader is lending $15 billion to a junk-rated borrower and offering a 33 percent gas-price cut on a gamble that Ukraine will become a permanent ally and President Viktor Yanukovych will hold off a surging protest movement in the 2015 election.
The prize is a crucial step in his crusade to halt what he sees as the West’s relentless encroachment on Russian interests since the end of the Cold War………………………………………..Full Article: Source

The United States’ largest public pension fund will be losing its head of hedge funds to Australia’s sovereign wealth vehicle. Craig Dandurand is wrapping up his final week as portfolio manager of absolute return assets after 13 years at the California Public Employees’ Retirement System (CalPERS) in Sacramento.
In the New Year, Dandurand and his family will relocate to Melbourne, Australia, where he will take up the role of director of debt and alternatives at the Future Fund.“We’re excited to have Craig join the team and think his experience will be an asset to our efforts,” Will Hetheron, the fund’s head of public affairs, said………………………………………..Full Article: Source